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Exam Question: Assume firms use two input factors: male and female workers who are highly substitutable. The government mandates that firms provide paid maternity leave

Exam Question: Assume firms use two input factors: male and female workers who are highly substitutable. The government mandates that firms provide paid maternity leave benefits to female employees. How will such a mandated benefit affect the wages and employment of males and females? Explain. (15 marks)

Labour economics exam question

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